'Korea and Japan vastly expand currency swaps'

from koreajoongangdaily........

"Korea and Japan agreed to expand their currency swap arrangements to $70 billion, up from $13 billion, to protect both economies from global financial instability.

Currency swaps are short-term loan agreements between two countries in case a foreign currency crisis arises. If a country’s foreign reserves dwindle and a currency crisis ensues, as happened to Korea in the late 1990s, that country could borrow the currency of the other country while pledging its own currency as collateral"..............READ MORE